The Electronic Data Exchange (EDI) is “The computer-to-computer exchange of
business documents in a standard electronic format between business partners” (EDI
Basics, 2021). From a business perspective, this is probably the best decision because
they can reduce cost, increase processing speed, reduce errors, and improve relationships
with business partners. Computer-to-Computer EDI is probably the most common form.
This helps replace postal mail, fax, and email. While email is electronic, it still requires
human interaction and therefore is not as reliable. It allows for a more streamlined
process where these documents can go straight through an application or server to the
receiver’s computer. As an auditor, this is both a blessing and a curse. Having less people
interact with the system allows an auditor to identify if the documents were manipulated
by someone who would have access. You can detect whether there is fraud or
misstatements far more easily knowing that very few people would be capable of
accessing this EDI. This also causes issues with regards to how the application or server
handles the data. If the system is flawed, it may be more difficult to identify where the
error occurred especially since no human interaction was involved. It would require an
auditor to understand the system intimately to identify issues. Also it would require the
examination of digital firewalls, and controls surrounding a system failure like when the
power goes out.
An Image-processing system is the combination of “the different elements
involved in the digital image processing. Digital image processing is the processing of an
image by means of a digital computer. Digital image processing uses different computer
algorithms to perform image processing on the digital images. It consists of following
components: image display, computer, Mass storage, hard copy device, Image-processing
hardware, Image-processing software, Image sensors” (GeeksforGeeks, 2019) This
process would be best used to transfer paper copies into digital records. One of the big
controversies surrounding this is the authenticity of the digital copy of the paper
document. An auditor would have to be able to discern whether the electronic copy is
accurate. They would need to verify the controls on the image processing to validate the
veracity of the scanned document. There would need to have controls such as passwords,
to control access to modifications to the documents.
References
• What is EDI (Electronic Data Interchange)? EDI Basics. (2021, May 7). Retrieved
September 13, 2022, from https://www.edibasics.com/what-is-edi/
• Components of Image Processing System. GeeksforGeeks. (2019, December 4).
Retrieved September 13, 2022, from https://www.geeksforgeeks.org/components-
of-image-processing-system/
• Messier, W. F., Glover, S. M., & Prawitt, D. F. (2019). Auditing & Assurance
Services: A systematic approach. McGraw-Hill Education.
